Definition of Philosophy

No Loans No Worries

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One of the things that most people have a hard time accepting is that it may take them a lifetime to accomplish certain dreams in their lives. One of the things that people often find hard to achieve is buying their own home, often being relegated towards renting or leasing to own. We have seen such dreams vanish and much of them can be seen in the growing number of foreclosures plaguing us lately. People just cannot figure out how to manage mortgages and such has resulted in losing their homes and of course their initial payments on dream homes turned into financial burdens.

Why take out a loan? Some people are taking it slow considering that loans will always be there for them to turn to. It does sound tempting but the fact remains you have to pay for it sooner or later. Once that happens, you never know how much you can spare from your daily cost of living. Some would declare that they would make sacrifices, but sadly, it does not happen.

From the looks of it, the philosophy of simply knowing your limit as far as money to spare has been overlooked these days. People are counting their finances but obviously, there is a significant number of factors when it comes to expenses that are not considered.

That is one waterloo that people fail to comply with. For some, as long as they can survive with their current income, then they can settle loans based on amortization schedules given. Taking it a bit deeper, proper deliberation and putting everything in would be better to address the ideal figures that a person can really loan.

Originally posted on October 31, 2008 @ 3:24 pm

The Philosophy of the U.S. Financial Bailout

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From the eyes of an ordinary consumer, the financial bailout is bound to point to only one thing, save the debt-ridden country from collapsing and nothing else. If only that were the case in doing business then perhaps we would have seen a lot of businesses surviving and economies rising. Sadly, the philosophy of it all is that business is done more than plain business.

There are more business components to consider. One of which is business policies that are sure to be varied, depending on the philosophy of the management team tasked to establish the business venture and create a profit overall. If something goes wrong along the way, you are sure to note that it is not plainly a matter of infusing cash and paying off debt. For how can a business go on surviving if such debts will just accrue over time?

Also, as far as the recourse provided by the government is concerned, it is more than just paying off debt. In exchange, various arrangements such as a stake in the company in the event they fail to settle their financial bailout loan is pegged as one of the key highlights in exchange for a loan. Is that feasible?

As far as companies are concerned, it may be the last hurrah for them. Rather than filing for bankruptcy, they are left with little choices. So in the event they still falter, then the company may give way to political power. If that would be the case, at least they tried and now pass the problem to the government powers. In the end, it is similar to applying a loan using your business as collateral.

Makes you think of the government has a dirty hand in it all. But if that is the philosophy they are applying then they just have to honor it, especially if they sign on the dotted line.

Originally posted on October 9, 2008 @ 3:17 pm

Spending at the Right Time

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Finances are one of the hardest things to control these days and apparently there is more to saying that we will not spend or save a penny for a rainy day. These days, it is no longer a matter of I want this and I want that. It is about being logical and practical as far as consumer spending is concerned. In short, there is more to buying the things we love based on ads or what people tell us to buy.

Of course, there is always the reference towards buying needs based on importance of need. Using the model of Maslow’s Hierarchy of Needs, people who use to ignore it may want to refer to it once again. These days, the things that Maslow had enumerated are for real. The other things that include electronics, mobile phones and pricey dinners or night outs are vices which now have to be controlled. In short, do not spend if you cannot save.

Being single or having parents to support you should not be your safety precaution. Most of us are adults and the act o being responsible can be done only if we really want to be one. We are no longer spoon-fed children to which we always know that there is someone to catch us when we fall. Wake up people, you should start facing the world and know your limits.

There is no better way to be responsible other than to manage your daily finances. Be logical and practical. One day you can boast that to your siblings as a good example to follow.

Originally posted on August 4, 2008 @ 12:43 am